The ESEE survey showed that for six out of ten people, a medium/high level of satisfaction with traffic was recorded.
The ESEE survey showed that six out of 10 businesses are satisfied with consumer traffic, however, overall fall revenues are unchanged from 2021, while for many they have already deteriorated. At the same time, 8 out of 10 companies said they had been hit hard by rising energy prices.
The above results are from research conducted by INEMY-ESEE, describing the participation of business enterprises in “Black Friday” and evaluating its main characteristics.
Participation Rate and Discount
According to the survey results, most companies participated in this year’s “Black Friday” sales (61%), which is slightly higher than last year, when 56% of companies participated. The intention of retail companies to increase their participation in the practice of “Black Friday” is primarily dictated by the policy of large retail chains, which inevitably imposed this measure as an enterprise, as evidenced by the responses of the participants.
In addition, half of the companies (49%) received discounts throughout the week, which led to a shift in discount percentages, as almost 2 out of 3 companies (62%) adopted discounts of up to 30%, while 1 out of 3 All 3 companies (34%) had a discount rate between 21% and 30%. Also, almost 2 out of 3 companies have applied general discounts, i.e. on all goods, unlike many chains and online stores that have adopted selective discounts, in certain categories/ranges of products. Publicity messages and follow-ups on the company’s social networks.
Satisfy
Overall, retail businesses seem relatively satisfied with their traffic, with 6 out of 10 reporting a medium/high level of satisfaction (Chart 3).
A similar picture was recorded in the level of satisfaction of companies with the turnover rate of companies, where 6 out of 10 companies declared that they were satisfied with a moderate / severe degree (Chart 4). This item indicates that there is no fundamental difference between store visits and purchases.
With regard to sales volume, the survey showed that one in three companies considers that their turnover in the fall of 2022 was at the same levels compared to 2021 (Chart 6). However, a significant percentage recorded a decline in sales.
Energy Crisis
Despite the fact that commercial enterprises are not energy-intensive, the negative effects of high energy prices are exponentially exacerbated. In particular, 8 out of 10 companies said they were hit hard/severely by energy price increases, while in a similar measure to summer sales, just three months ago, 7 out of 10 were affected to the same degree. Specifically, nearly half of companies experience increases in operating costs of up to 20%, a burden that is considered less compared to other industries. Of course, such a burden, in the midst of uncertainty and extreme liquidity, can only be seen as a challenge to business continuity, despite government support. Supplier costs have been kept at relatively moderate levels compared to operating costs, as many entrepreneurs have to Business negotiate prices in a timely manner, before the peak of the energy crisis back to physical stores.
However, despite the energy crisis and the resulting deterioration in the outlook, there is a boost in physical storage, as consumers show a strong tendency to reconnect to physical markets post-pandemic. Finally, most companies did not participate in “Cyber Monday”. Due to the relatively low level of digitization of enterprises, a finding that must be taken seriously to promote digital transformation, as highlighted by ESEE, especially small enterprises, which are mainly excluded from digitization programmes. European financing with relevance.
